The timing of the transaction is somewhat surprising as spinoffs typically wait two years before being acquired to avoid IRS scrutiny around their tax free status. But Journal Media has provided its former parent E.W. Scripps with an opinion reaffirming the tax free nature of the transaction. Gannett looks a little bit cheap here, but along with New Media (NEWM) they'll be the consolidators in an industry that I don't want to hold through the next recession (whenever that might be) as advertisers move toward other platforms. The broadcast/newspaper spinoff trade has worked out well this year, but time to close it out, I sold my shares today and will let arbitragers get the last percentage points.
Disclosure: No positions